Consumers shall use their best endeavors to obtain the highest Power Factor possible in the operation of any of their electrical installations. If the Average Power Factor in any month is found to be:

a) Below 0.85 and up to 0.75 lagging, a supplementary charge of one and one-half percent (1.5%) of the bill for that month for each one-hundredth part (0.01) below 0.85 and up to 0.75 lagging Power Factor will be added to the bill for that month, and

b) Below 0.75 lagging, in addition to the charge payable under subparagraph (a) above, a supplementary charge of three percent (3%) of the bill for that month for each hundredth (0.01) part below 0.75 lagging Power Factor will be added to the bill for that month.

DEFINITIONSUnless the context otherwise states, the following definitions shall apply:

"AVERAGE POWER FACTOR"

means the cosine of the angle of which the tangent is obtained by dividing the total of the reactive kilovolt-ampere-hours by the total of the kilowatt-hours recorded in any month by the company's meters.

"BILLING DEMAND"

measured in kW means the maximum demand registered during the month or seventy-five per cent (75%) of the maximum demand registered during the preceding eleven (11) months or the contract demand, whichever is higher; contract demand being equal to the estimated demand at the meter point at the time of connection.

"COMMERCIAL SUPPLY"

means the supply of energy from the Company's supply lines to all commercial premises including office block, shop, godown, restaurant, school, hotel, boarding house, farms, estate, port, broadcasting and telecommunication installation, cinemas and entertainment locations, military and Government installations and hospital, and any supply used in the construction or building activities, but excluding private dwellings and industrial premises.

"DOMESTIC SUPPLY"

means supply of energy to premises used only for private dwelling purposes, provided that no commercial activity is carried out in such premises.

"INDUSTRIAL SUPPLY"

means supply of energy to industrial operation such as manufacturing, quarrying, mining, shipbuilding business, and to consumers who utilize energy for the purpose of pumping water, in whose premises electric motors and plants are used in connection therewith and the total wattage of lamps and air-conditionings installed for purpose of office use shall not exceed twenty per cent (20%) of the total wattage of all electric equipment installed.

"MAXIMUM DEMAND"

means measured in kW, twice the largest number of kilowatt-hours supplied during any consecutive thirty minutes in any month.

"MONTH"

means the period between two successive meter readings, meters are normally read at intervals of approximately thirty days.

"OFF-PEAKPERIOD

means the period between 0000 hours and 0700 hours.

"PEAK PERIOD"

means the period between 0700 hours and 2400 hours.

"PUBLIC LIGHTING SUPPLY"

means supply of energy to any legal entity including the Commission of the City of Kuching North , Council of the City of Kuching South and other local authorities in respect of street lightings and other general lighting purposes.

"SCHOOL"

includes kindergarten, children play school, nursery, tuition centers, college and universities and any institutions offering study courses of any nature.